A key benefit of basic research is that conclusions drawn from it can be generalized
across many situations.
a. True
b. False
Imagine you work for Jonesville, Inc., a mid-sized company specializing in the
manufacturing and marketing of high end, high-performance mountain bikes.
Jonesville, Inc. recently hired an outside market research firm to assess its positioning
strategy and make recommendations about future positioning strategies. The research
firm submitted a perceptual map. The map’s x-axis (abscissa) reflects higher quality
when moving to the right, and they-axis (ordinate) reflects higher price when moving
up and positioned Jonesville in the upper right-hand quadrant. The research firm
recommends that Jonesville position another line of high-end mountain bikes in the
lower right hand quadrant where there are no competitors and there appears to be a gap
in the market.
a. Your boss doesn’t really understand the map. Explain to your boss what the map
means.
b. Evaluate the research firm’s logic for the new positioning location (i.e., identify the
logic’s flaw).